UOB Seen Bouncing Back Strongly After Steep Selloff
CGS International Research Report | April 8, 2025
United Overseas Bank Ltd (UOB) is poised for a strong rebound after a steep selloff, according to the latest analysis from CGS International. The report highlights several technical indicators that suggest the stock is oversold and primed for bullish pressure in the near-term.
Oversold Conditions Signal Buying Opportunity
Key points from the CGS International report:
- UOB’s share price gap down of more than 20% during the initial market sell-off has been quickly overrun, with strong buying pressure seen above the \$30 psychological support level.
- The stock has returned above the uptrend line that has been in place since March 2020, reinforcing the underlying bullish trend.
- Weekly chart analysis shows the major uptrend since March 2020 remains intact, with prices still trading above the 200-day exponential moving average.
- The thin Ichimoku cloud indicates the recent sell-off was parabolic but weak, setting the stage for a potential bounce-back.
- Trading volume rose above the 20-period average, signaling that buying pressure was stronger than the previous day’s selling pressure.
Initiating Technical Buy Call
Based on these technical factors, CGS International is re-initiating a technical buy call on UOB, with the following key levels:
- Entry Prices: \$33.23, \$31.60, \$30.95
- Support Levels: \$29.86, \$32.00
- Stop Loss: \$30.10
- Resistance Levels: \$35.23, \$39.25
- Target Prices: \$36.00, \$39.25, \$42.00, \$45.00
Company Overview
United Overseas Bank Limited is a leading financial services group in Asia. The bank provides a wide range of financial services including personal banking, wealth management, commercial and corporate banking, transaction banking, investment banking, and treasury services.
